For a large chain of restaurant, outsourcing of the supply chain and logistics processes may also be regarded as a major funding source for the local or global logistics organizations, which may be useful to facilitate savings in the organisation. These savings can in turn be used as a vital source of finance by the company. Correspondingly, inter-organizational investment has now become a common trend within majority of the organizations. It is principally owing to the fact that the contribution benefits for all the participating bodies persists as vast in terms of lower risks, lesser liabilities, adequate cash inflows, improvised liquidity aspects and financial stability rates among others (Hsyndicate, 2014).In accordance with the case example, the elements associated with costs can be differentiated into two main categories; viz., direct cost and indirect cost. Direct costs generally refer to the expenditure factors for an organization that are rigid to be controlled and managed easily. In the given case scenario, labour expenses, electric bills, machinery and maintenance can be identified as the elements of direct costs. Correspondingly, indirect costs can be referred as the expenditure resulting from those variables that can be controlled with minimum or no changes in the production process (Slide Share Inc. For instance, preventing the unnecessary use of electricity and setting up of alarm systems for preventing thievery attempts can bring about reduction in the levels of indirect cost within the organization.Correspondingly, the concept of gross profit percentage can be. Finance in the Hospitality Industry.
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